LOS ANGELES (CNS) – California Attorney General Rob Bonta has canceled a meeting with representatives of Paramount planned for Monday to begin discussing a settlement of the state’s lawsuit seeking to block Paramount’s proposed acquisition of Warner Bros. Discovery.
“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta said in a statement to The New York Times. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
There was no immediate response to an email sent by City News Service to two Paramount spokeswomen before the start of normal business hours Monday.
Bonta has called the merger illegal adding that it would result in higher prices, lower content quality, and fewer movies and television shows.
Paramount CEO David Ellison said in an Aug. 14 statement that the merger “will create a stronger competitor with greater capacity to invest in premium content, support creative talent and workers, and deliver more high- quality entertainment to audiences.”
The U.S. Department of Justice completed its review of the proposed transaction June 12 without seeking to block it, but Bonta and 11 other state attorneys general filed a federal antitrust lawsuit in July seeking to stop the deal.
Under an agreement reached in the case, Paramount and Warner Bros. cannot complete the transaction until June 1, 2027, or until after a court decision on the states’ claims, whichever occurs first. A trial is scheduled for March 2027.
Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic candidate for governor, are among Bonta’s fellow Democrats to have called for the parties to negotiate a resolution.
“While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table,” Bass said Thursday. “The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry.”
City Councilwoman Nithya Raman, who is challenging Bass in the Nov. 3 mayoral election, has opposed a settlement that would allow the transaction to proceed under its current terms.
“This is a bad deal for entertainment workers and a bad deal for Los Angeles,” Raman said. “That’s why I support Attorney General Rob Bonta’s antitrust lawsuit and stand with the workers fighting this merger.”
Raman also accused Paramount of attempting to pressure state officials by raising the possibility of moving operations out of California.
“Paramount’s threat to leave California unless the lawsuit is dropped is an attempt to strong-arm our state. Serious questions about this merger’s legality should be decided in court, not through corporate threats,” Raman said.
The Writers Guild of America was also quick to criticize Bass for calling for a settlement.
“We are disappointed that Mayor Bass has chosen to join Paramount’s pressure campaign on public enforcers, to push through a merger that is being rightfully challenged as illegal and will lead to job losses in the entertainment industry,” the WGA said in a statement to Deadline Hollywood.
“Her statement comes on the heels of a county report estimating thousands of jobs will be lost if the merger proceeds.”
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